This study is undertaken to understand the microalgal species composition, diversity, abundance and their association with the polluted sites of an industrial area. The microalgae and the wastewater samples collected from these sites were preserved and analysed using standard methods. One hundred and eight species of the microalgae, belonging to Cyanophyceae, Chlorophyceae, Euglenophyceae, Bacillariophyceace and Desmidaceae, were identified. Of these, the members of Cyanophyceae formed the dominant flora. It was observed that the family Oscillatoriaceae was the most diverse family. In this family, the most diverse genus was found to be the Oscillatoria, with 13 species. Further, the abundance of Oscillatoria princeps indicated that these species are tolerant to the pollution and therefore considered as the 'marker species' of the habitat. The abundance of the Cyanophyceae in these sites was found to be due to the favourable contents of the oxidizable organic matter and the presence of the nutrients, such as the nitrates and the phosphates, in abundance, with less dissolved oxygen. The lesser percentage of the Bacillariophyceae (14%), and the negligible number of the euglenoids (2%) indicated that the sites were rich in the inorganic pollutants and poor in the organic pollutants. The range of Shannon diversity indices was found between 2.10 and 3.50, while the dominance index was found between 0.03 and 0.14, the species evenness between 0.73 and 0.93 and the Margalef index between 1.8 and 6.3. The diversity indices indicated that there is light to moderate level of pollution in the studied sites, with moderate diversity level. The principal component analysis (PCA) of the physicochemical parameters identified the four possible groups, which were responsible for the data structure, explaining the 74% of the total variance of the data set. In the PCA performed using all the variables, the first principal component showed the positive correlation with the total dissolved solids (TDS), salinity, conductivity, temperature, biochemical oxygen demand (BOD) and the sulphates and the negative correlation with the dissolved oxygen (DO) and Pb2+. The second principal component showed the positive correlation with the pH, dissolved oxygen, chemical oxygen demand (COD), nitrates and phosphates, and the negative correlation with the TDS, salinity, conductivity, temperature and BOD. The canonical correspondence analysis (CCA) showed that there were significant (p<0.05) positive and negative relationships between some of the physicochemical parameters and the microalgal species at these sites. The results showed that Calonies bacillum and Pseudanabaena amphigranulata were in close positive association with the pH, DO, COD, chlorides, nitrates and Cu+2 at the third and the fifth sites; the Navicula sphaerophora, Stigonema minutum and Chlamydomonas sphagnicola were in close positive association with the phosphates and the lead at the first, second and the fifth sites; the Anabaena spiroides, Anabaena constricta, Oscillatoria curvic...